Global Equity Markets

Posted on | by Leon Hinde

Investors remain overly optimistic that corporate earnings and profits will catch up with elevated asset prices.

Given the massive interventions into markets by the Federal Reserve, the added liquidity has been successful in fostering a lift in equity prices. Unfortunately, there will be little translation into higher wages, full-time employment, or corporate profits.

A broadening of the rally into industrial and financials is continuing to propel the indices higher. However, the prospect of the economy catching up to market expectations in the next 12 months, is very low.

Investors should apply the following “rule” as a form of portfolio protection.

A break below the 10 day moving average will be a sign that market momentum is stalling.

Alumina

Posted on | by Leon Hinde

Alumina is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We see price support building at $1.38 and suggest traders watch the short-term momentum indicators and stay “long” AWC whilst the indicators trend higher.

Stop loss on a break below $1.38.

Since making the above post, AWC has rallied as buying support increases.

Boral

Posted on | by Leon Hinde

20/5 Boral is in our focus following the price trading below our target of $2.50 and the short-term indicators now turning back up.

See highlighted support levels in the chart, a break below these levels will trigger a stop loss.

Buy BLD above $2.50.

The above post is from the 20th of May. We continue to see upside momentum in BLD.

3/6 Boral is now displaying an Algo Engine sell signal. We see overhead resistance near the $4.00 price range.

CIMIC Group

Posted on | by Leon Hinde

Cimic Group

CIMIC provided no update on 2020 guidance, but reported its 1Q20 result with revenue of A$3.3bn, down 3% on the same time last year. NPAT was down 8% to $166mn.

We forecast 2020 full year NPAT to be in the range of A$700 – A$750mn.

Buy above $22.50 support.

Since making the above post, CIMIC has now rallied to $25.50 and we see further upside in the stock.

Berkshire Hathaway

Posted on | by Leon Hinde

Berkshire Hathaway is under Algo Engine buy conditions and is a current holding in our US S&P100 model portfolio.

We see the recent sell-off from $230 down to $160 as an opportunity for long term investors to accumulate the stock.

Investor Signals can establish a broking account for you to buy US stocks. We can advise and execute the orders on your behalf. For more information on our US broking account, please call 1300 614 002.

Telstra

Posted on | by Leon Hinde

Telstra Corporation is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We see buying support at $3.00 and highlight the short-term indicators have now turned positive. 

TLS goes ex-div $0.05 28th August. 

Call our office on 1300 614 002 to discuss the derivative strategy to enhance the income return.